ST. LOUIS & NEW ORLEANS--(BUSINESS WIRE)--Advantage Capital, a leading impact investor, today announced a $40 million allocation award in the highly competitive federal New Markets Tax Credit (NMTC) program. Administered by the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund, the program seeks to attract private investment to bring development and economic growth to distressed communities.
Advantage Capital is one of 102 organizations, selected from a pool of 197 nationwide applicants, to receive an allocation.
“For more than 20 years, the NMTC program has been central to our double bottom-line investment approach and founding mission to bring businesses, jobs and technologies to communities that have historically lacked access to investment capital, while producing competitive returns for our investors,” said Steven Stull, President, Advantage Capital. “We are honored to receive another allocation to enable our work in these communities and invest in entrepreneurs that are building the businesses that drive local economic growth.”
Advantage Capital has helped create more than 37,000 permanent jobs in low-income communities across the nation with average wages of more than $50,000 a year through its participation in the program.
“The New Markets Tax Credit plays a critical role in financing many vital businesses and community projects in our nation’s low-income communities,” said Assistant Secretary for Financial Institutions, Graham Steele in a release issued by the CDFI fund. “The investments that will result from [Friday’s] announcement will help preserve and create hundreds of thousands of jobs and spur economic growth in these urban, rural, and Tribal communities across our country. It is important that Congress sustains these investments by making the New Markets Tax Credit permanent.”
This announcement by the CDFI brings the total amount awarded through the NMTC program to $76 billion.
“The New Markets Tax Credit Program supports Louisiana entrepreneurs and small businesses revitalizing communities throughout our state,” U.S. Senator Bill Cassidy, M.D. “Congratulations to Advantage Capital and the other successful New Orleans-based funds on their awards.”
“For more than 20 years, the New Markets Tax Credit has catalyzed needed investment into the nation’s low-income rural and urban communities, which have a long history of disinvestment. It has created jobs, helped build businesses, and is a pivotal force in helping these communities not just recover but to grow stronger,” said CDFI Fund Acting Director Marcia Sigal in a press release issued by the CDFI Fund.
About Advantage Capital
Advantage Capital provides financing to established and emerging companies located in communities underserved by conventional sources of capital. Since 1992, the firm has invested more than $4.1 billion in companies from a diverse array of industry sectors and has helped support more than 67,000 jobs. Learn more at advantagecap.com, or via X (Twitter) or LinkedIn.
About the New Markets Tax Credit Program
The New Markets Tax Credit Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a non-refundable tax credit against federal income taxes for making equity investments in financial intermediaries known as Community Development Entities (CDEs). CDEs that receive the tax credit allocation authority under the program are domestic corporations or partnerships that provide loans, investments, or financial counseling in low-income urban and rural communities. The tax credit provided to the investor totals 39% of the cost of the investment and is claimed over a seven-year period. The CDEs in turn use the capital raised to make investments in low-income communities. CDEs must apply annually to the CDFI Fund to compete for New Markets Tax Credit Program allocation authority. Since the inception of the NMTC Program, the CDFI Fund has completed 19 allocation rounds and has made 1,563 awards totaling $76 billion in tax allocation authority. This includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority used for the recovery and redevelopment of the Gulf Opportunity Zone.
To learn more about the New Markets Tax Credit Program, please visit www.cdfifund.gov/nmtc.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $7.4 billion to CDFIs, community development organizations, and financial institutions through its funding programs, allocated more than $76 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds for more than $2.1 billion through the CDFI Bond Guarantee Program.
To learn more about the CDFI Fund and its programs, please visit the CDFI Fund’s website at www.cdfifund.gov.
Advantage Capital is an Investment Adviser registered with the U.S. Securities & Exchange Commission. Such registration, however, does not imply a certain level of skill or training. This release has been prepared for informational purposes and to announce a prior event, and nothing herein should be construed as an offer of investment advisory services or as an offer to sell or a solicitation of an offer to purchase any securities or investment product. All offers of investment interests in any fund or investment vehicle managed directly or indirectly by Advantage Capital are and will be made only to qualified prospective investors pursuant to separate and definitive offering and subscription documents in accordance with applicable federal and state securities laws. Advantage Capital is an equal opportunity provider.